Goldman Sachs Group's chief Asia-Pacific equity strategist, Timothy Moe, stated that artificial intelligence (AI)-related stocks remain attractive despite rising government bond yields.

Moe said, "We clearly belong to the 'stronger for longer' camp." He noted that capital expenditure by hyperscale cloud service providers is expected to reach approximately US$800 billion this year and about US$1.2 trillion by 2027, which serves as a major demand signal for Asia's AI hardware supply chain.

Moe stated that Asia's "extremely low" valuations also provide additional support. The region's overall price-to-earnings ratio stands at around 10 times, placing it at the lower end of its historical range. He added that earnings growth will also serve as a buffer against higher interest rates.

For the remainder of this year, Moe expects the market to be "somewhat bumpy" ahead of the U.S. midterm elections, with rising energy prices and geopolitical risks adding to the pressure. However, he said that after this period, driven by earnings growth and valuations, the market is expected to rebound before the end of the year.